News

by Andria Papageorgiou

Andria Papageorgiou Law Firm awarded by The Lawyers Global Awards 2023

It is with great pleasure that we announce that Andria Papageorgiou Law Firm has been awarded as an Outstanding Law Firm, within the regions of Europe, Eastern Europe, and ranked in the first position, as a Winner within the region of Cyprus, by The Lawyers Global (TLG), which is the ultimate exclusive directory for Elite Law Firms and Lawyers.

The award was received by the firm’s Founder, Mrs. Andria Papageorgiou.

Law firms have overcome the numerous challenges imposed by an atypical and unprecedented global crisis. Some of the challenges resulted, in many cases, in the capability of law firms to adjust, innovate, and find the paths for successful outcomes. Congratulations to all the Awarded law firms that proved to deserve their recognition and become listed at The Lawyers Global as The Law Firms’ Elite.

We are elated with this major achievement of our Law Firm as this recognizes the hard work and commitment during our very fresh beginning as a newborn Law Firm, with a legacy of a long experience in both legal and financial services sectors.

Our aim is to remain dedicated to bringing the highest value of service to our clients in any sector or industry they operate in, ready to provide bespoke advice and legal services tailored to the client.

Thank you to all friends, associates, and clients for their continuous and valuable support.

In case you have any questions, please do not hesitate to contact us for further professional assistance.

Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.

by Andria Papageorgiou

Andria Papageorgiou Law Firm Achieves Recognition in Legal 500: A Testament to Our Commitment to Excellence

Elevating Client Service and Establishing Benchmarks for Growth

In a landmark achievement that underscores our dedication to providing exceptional legal services, we are delighted to announce that Andria Papageorgiou Law Firm has been listed in the prestigious Legal 500 directory. This recognition not only reflects our commitment to excellence but also showcases our firm’s dedication to growth, improvement, and the relentless pursuit of serving our clients in the best possible way.

A Milestone of Excellence

Earning a spot in the Legal 500 is no small feat; it is a testimony to the expertise, hard work, and dedication of our legal professionals. The Legal 500 is widely regarded as one of the most authoritative guides to the world’s leading law firms, where inclusion is based on a rigorous evaluation of a firm’s performance, reputation, and client feedback.

This recognition serves as a testament to the high-quality legal services we offer across various practice areas. It is a validation of our commitment to staying at the forefront of legal developments, delivering strategic solutions, and achieving favorable outcomes for our clients.

Embracing Growth and Improvement

At Andria Papageorgiou Law Firm, growth, and improvement are not just words; they are the driving forces that shape our journey. The Legal 500 listing is not an end in itself but a significant milestone on our path of continuous advancement. This achievement motivates us to redouble our efforts and continue enhancing our legal capabilities to provide unparalleled value to our clients.

Our commitment to growth encompasses not only expanding our legal knowledge but also fostering a culture of collaboration, innovation, and adaptability. We believe that staying ahead of the curve in a constantly evolving legal landscape empowers us to serve our clients with the most relevant and effective legal solutions.

A Vision for Exceptional Client Service

Our vision extends beyond accolades and recognition. At the heart of our firm’s ethos is an unwavering dedication to serving our clients in the best possible way. From the moment a client walks through our doors, their objectives become our objectives. Our legal professionals work tirelessly to understand their unique needs, challenges, and goals, and to provide tailored strategies that deliver results.

We understand that legal matters can be complex and daunting. That’s why we prioritize clear communication, transparency, and a client-centric approach. Our success is deeply intertwined with the success of our clients, and we are committed to ensuring that they receive the highest level of legal counsel and advocacy.

A Shared Journey

Our achievement in being listed in the Legal 500 is not just a recognition of our law firm but also a celebration of the trust and support our clients have placed in us. It is a testament to the hard work and dedication of our legal professionals, whose passion for the law and commitment to excellence drives our firm forward.

As we move forward, we remain steadfast in our pursuit of growth, improvement, and the highest standards of legal service. The Legal 500 listing is a milestone, but it is also a reminder that our ultimate goal is to consistently exceed the expectations of our clients and set new benchmarks of excellence in the legal industry.

Thank you for being part of our journey. We look forward to continuing to serve you with the utmost dedication and excellence.

Please check out our listed profile here.

Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.

Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as financial or investment or legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information. 

by Andria Papageorgiou

Circular C589 – MONEYVAL’s report on money laundering and financing of terrorism risks in the world of virtual assets

We would like to draw your attention to Circular C589 (the “Circular”), issued by the Cyprus Securities and Exchange Commission (the “CySEC”) on the 18^th of July 2023, for the purposes of informing Regulated Entities, as these defined therein, about MONEYVAL’s Report on money laundering and financing of terrorism risk in the world of virtual assets (the “Report”).

A. Purpose:

The Report purports to present in an integrated manner an overview of the money laundering and financing of terrorism risks in the world of virtual assets (the “VAs”) and their service providers in MONEYVAL members. In order to do this, the Report includes the following:

• horizontal analysis of MONEYVAL’s members’ level of compliance with the Financial Action Task Force (the “FATF”) Recommendation 15;
• an overview of the measures taken to regulate and supervise virtual asset service providers (the “VASPs”) sector; and
• features of the identified risks that criminals use VASPs and VAs to launder proceeds of crimes (i.e. exchanges, exchange offices, aggregators, and other cryptocurrency platforms including e-gaming, sports betting, and NTFs).

In particular, the Report integrates and analyses data obtained from MONEYVAL members across multiple issues, relating to (a) how members regulated the activity of issuance of Vas and operation of VASPs; (b) whether the Law Enforcement Authorities (LEAs) have adequate powers and tools to investigate, locate and impose interim measures in respect of Vas; (c) the types of VA platforms used for financial support of criminal activity; (d) examples of cases investigated by the relevant authorities with description of criminal schemes involving the virtual asset elements that have been identified; and (e) other data relevant to the goals of the study.

B. Main Provisions:

In view of the above, the Report has been structured into the following four (4) sections:

1. Horizontal review of compliance with FATF Recommendation 15:

FATF has published documents that are aimed at helping jurisdictions and the private sector to comply with the new AML/CFT requirements for VAs and VASPs (available here and here). Due to the peculiarities of the sector and the relatively recent adoption of the standard, the vast majority of MONEYVAL members have not yet fully implemented these requirements (i.e. of the 23 jurisdictions that have been assessed since June 2021 for their compliance with Recommendation 15, the majority require major or moderate improvements). In particular, further improvements are needed in assessing ML/TF risks, supervision, and the application of AML/CFT preventative measures.

2. Assessment of VA and VASP risks:

As already mentioned above, not all members have assessed the ML/TF risks posed by VAs and VASPs, or if such risk assessment has been conducted in many cases it lacks depth. In the case of Andorra that carried out its second national risk assessment back in 2020, it is noted that the risk assessment at the national level would start with an inventory (i.e. when VASPs must be licensed or registered, leaving the authorities with the tasks of estimating if and to which extent unregistered entities are still servicing clients in the respective jurisdiction) of the registered entities in the jurisdiction and determining the materiality of the VASP sector. However, in practice, jurisdictions experience challenges in identifying unregistered or unlicensed VASP activity in their jurisdiction.

In view of the above and following the first inventory of VASPs, a more in-depth analysis of the sector was undertaken. There is a risk that if the work conducted by Andorra indicates that there are no businesses operating domestically that should be registered, then VAs and VASPs become less of a focus. An assessment must be made about the use of VAs in the country even if there are no registered VASPs (for instance, whether customers in the domestic jurisdiction are obtaining services in another jurisdiction).

3. Risk-Based Approach Supervision of the VASP Sector:

The relevant section of the Report outlines the different approaches taken by members to license or register domestic VASPs and to implement a risk-based supervisory framework for the VASP sector. In brief, the following are noted:

• VAs is defined as a digital representation of value that can be digitally traded or transferred and can be used for payment or investment purposes and do not include digital representations of FIAT currencies, securities, and other financial assets that are already covered elsewhere in the FATF Recommendations.
• VASP is any natural or legal person that provides as a business activity one or more of the following activities or operations for or on behalf of another natural or legal person: (i) exchange between virtual assets and FIAT currencies; (ii) exchange between one or more forms of virtual assets; (iii) transfer of virtual assets; (iv) safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets; and (v) participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset.
• The analysis shows that not all members included natural persons in the definition of VASPs.
• A risk-mitigating measure for VASP activity is the application of market entry controls and of adequate risk-based supervision for AML/CFT purposes in the sector.
• Recommendation 15 allows countries to choose between licensing or registration of VASPs, providing that at a minimum, VASPs would be required to be licensed or registered in the jurisdiction(s) where they were created.
• MONEYVAL members have implemented different approaches to supervision (i.e. licensing or registration authority is not always the same authority that conducts the AML/CFT supervision of VASPs).
• In supervising the VASP sector most of the MONEYVAL members are at the beginning of implementation. Not all supervisors are comprehensively resourced in terms of staffing and knowledge, and the risk-based approach is rarely tailored to a sector-specific risk assessment.
• The volume and flow of cross-border transactions is one important element that supervisors should consider when determining the risk of the VASP sector and conducting supervision activities.
• The availability of sanctions for VASP supervisors in MONEYVAL members differs in the scope and mounts of the sanctions that can be applied.

4. Law Enforcement and Operational Issues:

The capabilities and approaches of authorities in MONEYVAL countries to investigate ML/TF cases involving the use of VAs and to impose interim measures are examined in the relevant section of the Report. In particular, a number of case studies from the MONEYVAL region shed light on the use of VAs for money laundering purposes, such as the types of understanding crimes that are normally associated with such ML cases, as well as the modus operandi and typologies as to how such money laundering cases are perpetrated, are outlined within the Report. VAs are being used and can probably be used interchangeably with FIAT currencies when looking at typologies, as per the following investigated cases:

• Theft of VAs through “typosquatting” – Isle of Man (in cooperation with UK and Netherlands);
• Sale of fake VAs – Azerbaijan;
• Use of money mules – Latvia;
• Drug and arms dealing – Slovak Republic; and
• Laundering of drug trafficking proceeds – Malta.

C. Next Steps:

CySEC considers the Report to be of assistance to the Regulated Entities engaging or seeking to engage in VA activities, in understanding their AML/CFT risks and obligations and how they can effectively comply with these obligations.

To this end, it is expected by CySEC that all Regulated Entities will study the Report and take its content into account when assessing AML/CFT risks, thereby improving the effectiveness of the measures and procedures applied.

Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.

Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as financial or investment or legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information. 

by Andria Papageorgiou

Navigating the Legal Landscape of Acquiring a Licensed Entity: A Comprehensive Guide

A. Introduction:

Acquiring a licensed entity is a complex and highly regulated process that requires careful navigation of legal intricacies. Such acquisitions involve not only the transfer of ownership but also compliance with specific licensing requirements and regulatory approvals. In this article, we will outline the essential steps involved in acquiring a licensed entity, ensuring a seamless and legally sound transaction.

B. The Process:

Step 1: Letter of Intent (LOI)

The acquisition process often begins with the potential buyer submitting a non-binding Letter of Intent to the target company. The LOI outlines the buyer’s preliminary offer and key terms of the proposed acquisition, such as purchase price, conditions, and timeline. 

Step 2: Due Diligence (DD)

After accepting the LOI, the target company allows the buyer access to its financial, legal, operational, and other relevant information. This phase is called due diligence, during which the buyer investigates the target’s assets, liabilities, contracts, intellectual property, and other crucial aspects to assess the risks and opportunities of the acquisition. Engaging legal counsel and financial advisors during this phase is highly recommended to identify potential risks and evaluate the entity’s overall health.

Step 3: Negotiating the Purchase Agreement

Following successful due diligence, the parties proceed to negotiate a Definitive Agreement, often in the form of a Share Purchase Agreement (SPA). The Purchase Agreement is the cornerstone of any acquisition. This legally binding contract delineates the specific terms and conditions governing the transaction. It covers aspects such as the purchase price, payment terms, representations and warranties, indemnification provisions, and conditions precedent to closing. Both parties negotiate and finalize this agreement, often with the assistance of their respective legal counsel.

Step 4: Escrow Agreement

To add an extra layer of security, an Escrow Agreement may be established. In this agreement, a neutral third party (the escrow agent) holds the purchase price or a portion of it until all the closing conditions are met, ensuring that both parties fulfill their obligations before finalizing the transaction.

Step 5: Deposit or Earnest Money:

Upon reaching an agreement on the key terms in the SPA, the buyer typically pays a deposit or earnest money to the seller to demonstrate their seriousness about the acquisition and secure the deal. The deposit is usually held in escrow until the transaction is completed.

Step 6: Regulatory Compliance

The SPA includes conditions that must be met before the transaction can be completed. These closing conditions may involve obtaining necessary regulatory approvals, third-party consents, or fulfilling other specific requirements. For acquisitions involving licensed entities, regulatory compliance is of paramount importance. Depending on the industry and jurisdiction, the buyer may need to obtain approvals from relevant regulatory bodies. This process may include submitting applications/notifications, providing supporting documents, and demonstrating compliance with applicable laws and regulations.

Step 7: Transfer of Licenses and Permits

Acquiring a licensed entity entails the transfer of relevant licenses and permits from the seller to the buyer. This process may vary significantly based on the industry and location. Generally, the buyer needs to apply for the transfer of licenses, demonstrating that they meet all necessary qualifications and comply with regulatory requirements.

Step 8: Employee Considerations

The acquisition may impact the employees of the target entity. Ensuring a smooth transition involves understanding labor laws, employee contracts, severance arrangements, and potential union issues. Compliance with labor regulations is crucial to avoid any legal liabilities arising from the acquisition.

Step 9: Closing the Transaction

With all regulatory approvals secured, licenses transferred, and other contractual obligations met, the parties proceed to the closing of the transaction. At this stage, the purchase price is paid, and the legal ownership of the licensed entity is transferred from the seller to the buyer.

C. Conclusion:

Acquiring a licensed entity involves navigating a complex legal procedure to ensure compliance and mitigate risks. By conducting thorough due diligence, negotiating a comprehensive Purchase Agreement, and obtaining the necessary regulatory approvals, potential buyers can increase the chances of a successful and legally sound acquisition. Engaging experienced legal counsel throughout the process is crucial for a seamless acquisition experience and to protect the interests of all parties involved.

Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.

Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as financial or investment or legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information. 

by Andria Papageorgiou

Updates surrounding Markets in Crypto-Assets Regulation (MiCA)

Following the recent approval of the Markets in Crypto Assets Regulation (the “MiCA”) in June 2023 and the corresponding implementing measures that needs to be prepared, we would like to draw your attention on the following news and press releases published by the European Banking Authority (the “EBA”) and the European Securities and Markets Authority (the “ESMA”) on the 12^th of July 2023:

A. EBA’s publications:

1. Consultation Paper on Complaints handling procedures for issuers of asset-referenced tokens (EBA/CP/2023/13);
2. Consultation Paper on information for the assessment of a proposed acquisition of qualifying holdings in issuers of asset-referenced tokens under MiCA (EBA/CP/2023/14);
3. Consultation Paper on EU market access of issuers of asset-referenced tokens (EBA/CP/2023/15); and
4. Statement on timely preparatory steps towards the application of MiCA to asset-referenced and e-money tokens.

B. ESMA’s Consultation Paper:

1. Consultation Paper on Technical Standards specifying certain requirements of MiCA (ESMA74-449133380-425)

In brief, allow us to summarise the following:

A. EBA’s News and Press: 

1. Consultation Paper on Complaints handling procedures for issuers of asset-referenced tokens (EBA/CP/2023/13):

• Scope: To ensure prompt, fair and consistent handling of complaints by holders of asset-referenced tokens (the “ARTs”) and other interested parties.
• Main Provisions: It sets out definitions of complaints and complainants, requirements related to the complaints management policy and function, provision of information to holders of ARTs and on templates and recording. They then proceed with requirements about the procedure to investigate complaints and to communicate the outcome of the investigations to complainants and specific provisions for complaints handling involving third-party entities.
• Next Steps: Comments to the Consultation Paper EBA/CP/2023/13 can be sent by clicking on the “send your comments” button on the EBA’s consultation page. The deadline for the submission of comments is on the 12^th of October 2023.

2. Consultation Paper on information for the assessment of a proposed acquisition of qualifying holdings in issuers of asset-referenced tokens under MiCA (EBA/CP/2023/14):

• Scope: To regulate access to the EU market of ARTs by applicant issuers and persons intending to exercise significant influence on these undertakings via the acquisition of qualifying holdings.

• Main Provisions:

• • Under MiCAR, the offer to the public or the admission to the trading of an ART is reserved for legal persons or other undertakings established in the EU subject to the authorisation and approval of the publication of a white paper. The draft RTS on information for authorisation lay down the information requirements to be included when applying for such an authorisation. The information requirements cover the business model, and internal governance, including ICT risk management, liquidity, the reserve of assets, sufficiently good repute of the members of the management body, and of shareholders with qualifying holdings.
  • The draft ITS set out the standard application letter, and the application template and clarify the process relating to the assessment of completeness of the application by the competent authority. As credit institutions are only required to receive approval to publish a white paper, the draft RTS and ITS do not apply to credit institutions.
  • Consistent with the general regime applicable in the financial sector, MiCAR envisages a prudential assessment by competent authorities for the acquisition of qualifying holdings in issuers of ARTs that are not credit institutions. The draft RTS on the detailed content of the information to be included in the notification for the proposed acquisition clarifies the information requirements that are necessary for such an assessment.
  • This information covers five criteria relating to (a) the reputation of the proposed acquirer, (b) the suitability of any person who will direct the target undertaking, (c) the financial soundness of the proposed acquirer, (d) the sound and prudent management of the target undertaking following the acquisition and (e) suspicion that money laundering or terrorist financing is committed or attempted or that it may increase following the acquisition.

• Next Steps: Comments to the consultation paper can be sent by clicking on the “send your comments” button on the EBA’s consultation page. The deadline for the submission of comments is 12 October 2023.

3. Statement on timely preparatory steps towards the application of MICA to ART and e-money tokens (the “EMT”):

• Scope: To encourage timely preparatory actions to MiCA application, with the objectives to reduce the risks of potentially disruptive and sharp business model adjustments at a later stage, to foster supervisory convergence, and to facilitate the protection of consumers.
• Content:
  • The Statement includes ‘guiding principles’ to which financial institutions (and other undertakings) carrying out ART/EMT activities are encouraged to have regard until the application date (disclosures to, and fair treatment of, potential acquirers and holders of ARTs and EMTs, the business model, sound governance, including effective risk management, reserve, recovery and redemption arrangements, and communications with the relevant competent authority).
  • The Statement is accompanied by a template that financial institutions (and other undertakings) intending to carry out, or carrying out, ART/EMT activities, are encouraged to communicate, on a timely basis, to the relevant competent authority.

B. ESMA’s Consultation Papers:

Same-day press release publication by ESMA,  in relation to the lunch of the first of three consultation packages (the “ESMA’s Consultation Paper”), on the technical standards specifying certain requirements.

• Scope: Through the aforesaid consultation paper, ESMA is seeking input on proposed rules for CASPs related with their authorization, identification and management of conflicts of interest as well as the procedures on how CASPs should address complaints. The ESMA’s Consultation Paper‘s aim is to collect views, comments and opinions from stakeholders and market participants in regard to the appropriate implementation of MiCA.

• Main Provisions:

• • Provision of crypto-asset services by certain financial entities – Article 60

Specifies the notification requirements, that certain financial entities intended to provide crypto-asset service and for which they shall take into account when submitting the notification to the NCA of their home Member State (e.g. program of operations, description of the internal control mechanisms relating to AML/CFT obligations, description of the procedure for the segregation of clients’ crypto-assets and funds, etc.)

• • Content of templates for the application for authorisation – Article 62

Sets out the requirements related to the application for the authorisation as a CASP as well as the information to be provided with the application that shall be submitted to the NCA of their home Member State. (i.e. program of operations, description of CASP’s governance arrangements, description of the procedure for the segregation of clients’ crypto-assets and funds, etc.).

• • Complaints-handling procedures of CASPs – Article 71

Provides the requirements that CASPs shall follow when establishing and maintaining effective and transparent procedures for the prompt, fair, and consistent handling of complaints received from clients (i.e. filing a free-of-charge complaint by the client).

• • Identification, prevention, management, and disclosure of conflicts of interest by CASPs – Article 72

Clarifies the policies and procedures that CASPs shall implement and maintain so as to be able to identify, prevent, manage and disclose any conflict of interest and disclose to their clients the general nature and sources of conflicts of interest as well as the steps that shall be taken to mitigate them.

• • Assessment of intended acquisition of a qualifying holding in a CASP under Article 83(4)

Natural/Legal person who intends to acquire or increase a qualifying holding in a CASP shall notify the respective NCA through an assessment with the specific information in order for the relevant NCA to assess the proposed acquisition or increase the existing qualifying holding.

• Next Steps: Comments to the ESMA’s Consultation Paper can be sent by clicking the heading ‘Your input – Consultations’. The deadline of the submission of the responses/comments is on the 20^th of September 2023.

Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.

Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as financial or investment or legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information. 

by Andria Papageorgiou

Strengthening Compliance: Safeguarding against Money Laundering Risks

A. Introduction:

In an increasingly interconnected and digital world, the fight against financial crimes, including money laundering, has taken center stage. As illicit activities continue to evolve and become more sophisticated, it is crucial for businesses to prioritize Anti-Money Laundering (AML) compliance. This article sheds light on the importance of AML measures, the risks associated with non-compliance, and how our law firm is dedicated to upholding AML standards while offering consulting services to organizations seeking to strengthen their AML frameworks.

B. The Significance of AML Compliance:

Anti-Money Laundering compliance refers to the comprehensive set of regulations, policies, and procedures designed to prevent the facilitation of money laundering and terrorist financing activities. Money laundering not only undermines the integrity of the global financial system but also aids criminal enterprises in disguising their illicit gains as legitimate funds. By complying with AML regulations, businesses not only protect their reputation but also contribute to maintaining the integrity of the financial system.

C. Risks of Non-Compliance:

The consequences of non-compliance with AML regulations are severe, ranging from reputational damage to financial penalties and legal consequences. Financial institutions and businesses failing to implement adequate AML controls can face substantial fines, regulatory sanctions, and potential loss of licenses (if applicable). Additionally, non-compliance may lead to damaged customer trust and adverse publicity, which can have long-lasting impacts on an organization’s bottom line.

D. Our Commitment to AML Compliance:

At Andria Papageorgiou Law Firm, we recognize the critical importance of AML compliance and the challenges businesses face in meeting regulatory obligations. With a team of experienced legal professionals specializing in AML, we are dedicated to assisting organizations in navigating the complex AML landscape, tailoring our services to their unique needs.

Our law firm offers comprehensive AML consulting services, helping clients establish robust AML frameworks and compliance programs. We collaborate closely with businesses across various sectors, providing guidance on risk assessment, policies and procedures development, staff training, and ongoing monitoring. By leveraging our expertise, organizations can ensure compliance with AML regulations, minimize risks, and safeguard their operations and reputation.

Recognizing that each business has unique AML requirements, our consulting services are tailored to meet specific needs. We work closely with clients to understand their operations, risk profile, and regulatory environment. We then develop customized solutions that address their specific challenges, ensuring an effective and efficient AML compliance program.

We understand that AML regulations are constantly evolving to keep pace with emerging risks. We remain up-to-date with the latest regulatory developments and industry best practices, ensuring our clients stay ahead of the curve. We proactively monitor changes in AML laws, guidelines, and enforcement actions, incorporating relevant updates into our consulting services to help clients maintain their AML compliance posture.

Further to all the above, we are also proud to announce that our esteemed Founder and Lawyer, Mrs. Andria Papageorgiou, has achieved an exceptional milestone in her professional career. Mrs. Papageorgiou has recently completed the prestigious International Compliance Association (ICA) Certification in Anti-Money Laundering (AML) for Institute of Certified Public Accountants of Cyprus and Cyprus Bar Association (CBA) Members, successfully passing the exam with Distinction. This accomplishment highlights her expertise and dedication to upholding the highest standards in AML compliance. The ICA Certification in AML is an internationally recognized qualification offered by the International Compliance Association (ICA). This certification equips professionals with the in-depth knowledge and skills necessary to combat the ever-evolving challenges posed by money laundering and terrorist financing activities.

E. Conclusion:

The fight against money laundering requires a proactive and comprehensive approach to ensure the integrity of the global financial system. By prioritizing AML compliance, businesses can mitigate risks, Andria Papageorgiou Law Firm, we are committed to helping organizations navigate the complex world of AML regulations through our tailored consulting services. 

Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.

Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as financial or investment or legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information. 

by Andria Papageorgiou

Arbitration and Mediation: Exploring Alternative Dispute Resolution Methods

A. Introduction:

In today’s legal landscape, resolving disputes through litigation can be a time-consuming and costly process. As a result, alternative dispute resolution (ADR) methods like arbitration and mediation have gained significant popularity. These methods offer parties involved in a dispute an opportunity to find mutually acceptable resolutions outside of the traditional courtroom setting. This article aims to provide an overview of arbitration and mediation as effective ADR mechanisms.

B. Arbitration:

Arbitration is a private and voluntary process in which parties present their dispute to one or more arbitrators who act as neutral third parties. Unlike litigation, arbitration allows the parties to have more control over the process, including the choice of arbitrators, venue, and procedural rules. The arbitration process typically involves the following key steps:

1. Agreement to Arbitrate: Parties enter into an agreement to resolve their dispute through arbitration. This agreement may be included in a contract or agreed upon after a dispute arises.
2. Selection of Arbitrators: Parties have the flexibility to choose their arbitrators based on their expertise and impartiality. Arbitrators may be legal professionals or industry experts with knowledge related to the subject matter of the dispute.
3. Presentation of Evidence and Arguments: Parties present their case, including supporting evidence and legal arguments, to the arbitrators. This may involve witness testimonies, expert opinions, and documentary evidence.
4. Arbitration Award: After considering the evidence and arguments, the arbitrators render a final and binding decision, known as the arbitration award. The award is enforceable in courts and provides a resolution to the dispute.

C. Mediation:

Mediation is a voluntary and confidential process in which a neutral third party, known as the mediator, facilitates communication and negotiation between the disputing parties. The mediator assists the parties in identifying their interests, exploring potential solutions, and reaching a mutually agreeable settlement. The mediation process typically involves the following stages:

1. Introduction: The mediator establishes the ground rules, explains the mediation process, and ensures all parties understand the voluntary and confidential nature of mediation.
2. Individual Statements: Each party has the opportunity to express their perspective and concerns regarding the dispute without interruption.
3. Joint Discussion: The mediator facilitates open communication between the parties, encouraging dialogue, identifying common interests, and exploring possible solutions.
4. Negotiation and Agreement: With the assistance of the mediator, the parties engage in a collaborative negotiation process to reach a mutually acceptable resolution. If an agreement is reached, it is documented in a written settlement agreement.

Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.

Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as financial or investment or legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information. 

by Andria Papageorgiou

ESAs public consultation on DORA

We would like to draw your attention that the European Supervisory Authorities (EBA, EIOPA, and ESMA – the ESAs) launched yesterday, 19^th of June 2023, a public consultation on the first batch of policy products under the DORA.

This includes four draft regulatory technical standards (RTS) and one set of draft implementing technical standards (ITS). These technical standards aim to ensure a consistent and harmonized legal framework in the areas of ICT risk management, major ICT-related incident reporting, and ICT third-party risk management.

DORA entered into force on the 16^th of January 2023 and will apply from the 17^th of January 2025 aiming to enhance the digital operational resilience of entities across the EU sector and to further harmonize key digital operational resilience requirements for all EU financial entities.

This regulatory framework covers key areas such as:

• ICT risk management,
• ICT-related incident management and reporting,
• digital operational resilience testing and
• management of ICT third-party risk.

DORA has mandated the ESAs to jointly develop altogether 13 policy instruments in two batches. The first batch of technical standards, are the following:

• RTS on ICT risk management framework and RTS on simplified ICT risk management framework;
• RTS on criteria for the classification of ICT-related incidents;
• ITS to establish the templates for the register of information;
• RTS to specify the policy on ICT services performed by ICT third-party providers.

The ESAs expect to submit these draft technical standards to the European Commission by 17 January 2024.

Comments to this consultation can be sent to the ESAS by the 11^th of September 2023.

Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.

Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as financial or investment or legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information. 

by Andria Papageorgiou

CySEC Circular C576 – Adoption of the European Banking Authority Guidelines

We would like to draw your attention to Circular C576 (the “Circular”) issued by the Cyprus Securities and Exchange Commission (the “CySEC”) on the 2^nd of June 2023, for the purposes of informing the Cyprus Investment Firms (the “CIFs”) about its decision to adopt the following European Banking Authority’s (the “EBA”) guidelines, that have been previously published within 2022, by incorporating them into its supervisory practices and regulatory approach:

• (a) Guidelines on the benchmarking exercises on remuneration practices and the gender pay gap under the Directive (EU) 2019/2034 (the “Guidelines on benchmarking”). Our previous notification email is attached herein; and
• (b) Guidelines on data collection exercises regarding high earners under Directive 2013/36/EU and under Directive (EU) 2019/2024 (the “Guidelines on high earners”). Our previous notification email is attached herein.

In brief, kindly note the below:

1. Guidelines on benchmarking:

The relevant guidelines specify how competent authorities shall collect from investment firms the remuneration and the gender pay gap data and how they will then submit them to EBA. It is noted that the said data shall be collected and submitted at the individual level whereas where Article 7 of IFR applies, this data shall be collected and submitted only at the level of consolidation set out therein. Please note that the Guidelines on benchmarking should be read in conjunction with the EBA Guidelines on sound remuneration policies under IFD.

In view of the above and pursuant to Section 28(1) of the Prudential Supervision of Investment Services Law of 2021 (the “Prudential Supervision Law”), CySEC shall collect the information disclosed in accordance with Article 51(1)(c) and (d) of IFR as well as the information provided by CIFs on the gender pay gap and use that information to benchmark remuneration trends and practices. Pursuant to Section 28(4) of the Prudential Supervision Law, CySEC shall provide the collected information to EBA in order to benchmark remuneration trends and practices at the Union level.

Therefore, the following actions should be taken by CIFs in regard to the topics presented below:

*It is clarified that the remuneration data outlined above should be submitted by the 31^st of August 2023 the latest, regarding the financial year 2022.

2. Guidelines on high earners:

The objective of the data collected on high earners is to analyse and publish year-to-year developments in the number of individuals in institutions and investment firms earning at least EUR 1 million within the European Union (the “EU”) and the European Economic Area (the “EEA”), and within the different Member States, and to assess the major components of remuneration awarded to high earners in different business areas. The said information can be used together with other remuneration benchmarking data to analyse the application of remuneration policies within the EU and EEA and the trends in remuneration practices so as to improve the relevant legal framework.

In view of the above, CIFs should submit to CySEC data regarding high earners (i.e. staff member(s) earning a remuneration of at least EUR 1 million in the reported financial year) so as for the latter to submit such information to EBA.

Please note that high earners data should be reported, as applicable, at the level of consolidation set out in Article 7 of IFR and should concern all the high earners’ data for all entities and branches within the highest level of prudential consolidation. In the case of standalone investment firms, high earner’s data should be reported on an individual basis. The data submitted should also include data relevant to EU/EEA branches.

In this respect, please note the following:

• Where CIFs do not have high earners to report, it is not necessary to submit this information, unless explicitly requested by the CySEC.
• High earners data should be submitted to CySEC each year for any given financial year by the 15^th of June of the next calendar year.
• It is clarified that high earners’ data should be submitted by the 31^st of August 2023 the latest, regarding the financial year 2022.

3. Method of submission:

The information outlined in points 1 and 2 above should be submitted through CySEC’s XBRL Portal only, which is expected to be updated by the 30^th of June 2023.

CIFs are urged to consider the Guidelines on benchmarking & Guidelines on high earners and where necessary, take actions to ensure compliance with their provisions.

Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.

Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as financial or investment or legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information. 

by Andria Papageorgiou

Regulation on Markets in Crypto-assets: Navigating the Evolving Landscape

A. Introduction:

In recent years, the rapid growth of cryptocurrencies and the emergence of blockchain technology have led to a significant expansion of the crypto-assets market. This growth, while exciting, has also raised concerns regarding investor protection, market integrity, and financial stability. As a result, regulatory authorities around the world have been striving to develop comprehensive frameworks to regulate markets in crypto-assets. This article aims to explore the evolving regulatory landscape and its implications for market participants.

B. The Global Context:

Crypto assets, including cryptocurrencies and tokenized assets, operate in a borderless digital environment, posing challenges for traditional regulatory frameworks. Recognizing the need for regulatory clarity, several jurisdictions have taken proactive steps to establish frameworks that balance innovation with investor protection.

One notable initiative is the European Union’s proposed Regulation on Markets in Crypto-assets (MiCA). MiCA aims to create a harmonized regulatory framework for crypto-assets and related service providers within the EU. The regulation seeks to enhance transparency, protect consumers, and foster market integrity while promoting innovation.

C. Key Provisions of MiCA:

1. Classification and Authorization: MiCA introduces a comprehensive classification system for crypto-assets, distinguishing between e-money tokens, asset-referenced tokens, and significant or non-significant tokens. It also establishes a licensing regime for crypto-asset service providers, ensuring they meet strict operational and governance standards.
2. Market Conduct and Investor Protection: MiCA sets out rules on the marketing, sale, and provision of crypto-assets and related services. It aims to enhance investor protection by requiring clear and accurate disclosure of risks, imposing conduct of business obligations on service providers, and establishing safeguards against market abuse and fraud.
3. Operational Requirements: The regulation imposes operational requirements on crypto-asset service providers, including capital requirements, custody rules, and risk management obligations. These provisions aim to ensure the security and resilience of market infrastructure and protect customer assets.
4. Cross-Border Passporting: MiCA introduces a mechanism for cross-border passporting, allowing authorized service providers to operate across EU member states without the need for additional authorizations. This harmonization is expected to foster competition, facilitate market access, and streamline regulatory compliance.

D. Challenges and Opportunities:

Implementing regulations on markets in crypto-assets is a complex task, requiring a balance between regulatory oversight and fostering innovation. Challenges include addressing the inherent volatility of crypto-assets, the risk of money laundering and terrorism financing, and the need for international cooperation.

However, clear and consistent regulatory frameworks can also bring opportunities. Regulatory certainty can attract institutional investors, encourage responsible innovation, and provide a level playing field for market participants. It may also help mitigate systemic risks associated with the growing interconnections between traditional financial systems and crypto-assets.

E. Conclusion:

The regulation of markets in crypto-assets is an ongoing and dynamic process, driven by the need to protect investors, maintain market integrity, and foster innovation. Initiatives like MiCA demonstrate a commitment to providing legal clarity and regulatory oversight within the European Union. As the global regulatory landscape continues to evolve, it is essential for market participants to stay informed, adapt to changing requirements, and engage in constructive dialogue with regulators to shape the future of this exciting and transformative market.

Should you have any further questions, please do not hesitate to contact us at info@apapageorgiou.com.

Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as financial or investment or legal advice on any matter. It is important to conduct thorough research and consult with financial professionals before making any investment decisions related to cryptocurrencies or digital banking. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.